Bonus Perks of LEED Homes

• Transferable Savings – The abatement stays with the property, so future buyers also benefit.

• Lower Utility Costs – Energy-efficient systems mean long-term savings.

• Resale Value – LEED homes often attract buyers seeking lower ongoing costs and sustainable living.

Want to Learn More?

Visit choosecincy.com for more on the City of Cincinnati’s CRA Tax Abatement Program, or check hamiltoncountyauditor.org for estimated tax info.

If you’re looking at a new build or major renovation and want to know how a tax abatement could impact your budget, I’m happy to walk you through the numbers.

How Does the City of Cincinnati’s Residential Tax Abatement Work?

One of the first questions we often get from buyers building a new home or investing in major renovations is: What’s the deal with tax abatements?

Here’s the short answer: The City of Cincinnati offers a residential tax abatement program that allows you to freeze property taxes at the pre-improvement value of your property for 10 to 15 years, even after major upgrades or new construction. This can make a huge difference in your monthly payment—and ultimately your buying power.

WHY DOES CINCINNATI OFFER THIS TAX ABATEMENT PROGRAM?

The City’s Community Reinvestment Area (CRA) Program is designed to:

• Encourage development and revitalization

• Retain homeowners within the city

• Lower upfront costs for homeownership and rental development

• Boost future tax revenue by increasing land values

• Promote sustainable, energy-efficient building practices

What About LEED Certification?

LEED (Leadership in Energy and Environmental Design) is a globally recognized green building certification program. Homes built to LEED standards are healthier, more efficient, and more environmentally friendly. LEED certification plays a big role in Cincinnati’s tax abatement program—the higher the level of certification, the larger the tax savings.

There are four LEED levels:
Certified, Silver, Gold, and Platinum—each offering increasing benefits.

2022 CRA Program: Current Abatement Levels

As of the City’s updated rules in 2022, here’s how the tax abatements work for new construction:

Note: The abatement applies to the improved value, meaning you still pay taxes on the original land value.

Still Seeing Old Rules on Listings?

Some homes still fall under the pre-2022 abatement guidelines because they were permitted before the changes took effect. You might see these homes advertised with unlimited abatement values or longer terms. Here’s a quick reference of the “old” rules:

TAX ABATEMENT SAVINGS EXAMPLE – The “OLD” Rules

Let’s look at how tax abatements can affect monthly payments on a LEED Platinum home built under the old rules:

Despite a higher price point, the LEED Platinum home stays surprisingly close in monthly cost—thanks to the tax abatement.

This is all dependent upon the initial “pre-improvement” land value of a lot and the LEED certification level, so these rates are all variable.

OTHER HOMEOWNER BENEFITS

Besides saving on your monthly payment for taxes, there are other benefits to owning a LEED Certified tax abated home. First, the abatement is transferrable from homeowner to homeowner during the abatement term, thus increasing your home’s resale value.  Additionally, you will be saving on energy bills from the building efficiencies of a green home.                            

ADDITIONAL INFORMATION AND RESOURCES

Please visit choosecincy.com for additional information on the City of Cincinnati tax abatement program (aka Community Reinvestment Area).

*Taxes estimated from hamiltoncountyauditor.org